Update. Barclays’ responded to the problems noted below with their IVOP ETN. It has now has a similar situation that XXV has—near its max price and very low leverage. See this post for more information. ************************************************************* Originally Posted December 11, 2011 Question: What would the value of Barclays’ inverse volatility XXV ETN be if Barclays’ volatility VXX ETN goes to zero? Answer $40 / share …
Update redirected to https://www.sixfigureinvesting.com/2010/04/going-short-on-vix/ I do not recommend XXV. At its current price of around $30/share it does not deliver the sort of performance you would expect an inverse volatility security to deliver. This security can go no higher than $40 per share and can only get there slowly. See this post for more information. If you want to be short volatility use XIV …
Update: I do not believe XXV is a good way to short VXX, or volatility in general. It has very little upside remaining (maximum value will be $40/share), see this post for more details. ********************************************************** With the recent action in the VIX and VXX I thought it would be good time to go back and check the performance of Barclays’ new ETN product XXV to see …
Update: Barclays terminated XXV in April 2018. There is no replacement product. ********************************************************** XXV Prospectus: XXV: Barclays Inverse VolatilityETNs Usually getting the prospectus for a new ETF or ETN takes a Google search and a couple minutes of browsing. The prospectus for Barclays’ new XXV inverse volatility ETN proved to be a much more elusive search—it didn’t show up in the top 20 hits. …
Made my first trade in XXV yesterday, buying at 23.07. During corrections, like the one we are in right now, the VIX index tends to spike up pretty early, a day or two in. Later, even when the market drops are larger, the VIX does not seem to match the earlier highs–unless of course the market moves into a more panicky phase.
